Letter from the Citizens' Association to the comptroller of the city and country of New York : how our taxes may be reduced to one per cent, our reven

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| LETTER FROM

COMPTROLLEE

OF THE CITY AND COUNTY OF NEW-YORK.

IMPORTANT INFORMATION FOR EVERY TAX-PATER.

NEW-YORK :
"Pu"blistied >>y the Citizens' Association,
No. 813 BROADWAY.

1868.

— :Sa?f?

HOW OUR TAXES MAY BE REDUCED TO
ONE PER CENT.,
OUR REVENUES DEVELOPED,

(t\ AND /TV

OUR DEET LIQUIDATED. §

THE GREAT QUESTION OF THE DAY IS

''RETRENCHMENT and INTELLIGENT, THOROUGH, COMPRE-
(k HENSIVE REFORM."

( vj>

LETTER FROM

She iitfeettf ^Mmvtfou

TO THE

COMPTROLLEE

OF THE CITY AND COUNTY OF NEW-YORK.

HOW OUR TAXES MAY BE REDUCED TO
ONE PER CENT,

OUR REVENUES DEVELOPED,

AND

OUR DEET LIQUIDATED.

IMPORTANT INFORMATION FOE EVERY TAX PAYER.

THE GEEAT QUESTION OF THE DAT IS

" RETRENCHMENT and INTELLIGENT, THOROUGH, COMPRE-
HENSIVE REFORM."

NEW-YORK :

Published. t>;y the Citizens' .Association,
NO. 813 BROADWAY.

1868.

ml
MM

Digitized by the Internet Archive
in 2013

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LETTER

FROM TOE

CITIZENS' ASSOCIATION,

TO THE COMPTROLLER.

Citizens' Association of New-York,
No. 813 Broadway, New- York, Jan. 10, 1868.

Hon. Richard B. Connolly, Comptroller of the City and County
of New- York :

Dear Sir — In the Annual Report for the year 1866, of
the Department of Finance of the City of New-York, yon
expressed a determination, to the best of your ability, to meet
the responsibilities and discharge the duties of the office to
which you had been elected in such a manner as to promote
the interests of the tax-payers, and sustain the credit and
honor of the Corporation.

You are intended to be in fact what you are in law — the
guardian of the public treasury and the general conservator
of the public property. Your position, as a matter of course,
must make you perfectly familiar with the details of the
several departments of the City and County Government,
and the necessities of the public service.

As you have so forcibly expressed your determination to
protect and advance the public interests, the Citizens' Asso-
ciation trusts that you will realize these pledges and reduce
the local taxes.

4

Every plan to reduce taxation should involve the follow
ing three propositions :

First — The reduction of our standing debt.

Second — The increase of the City revenues.

Third — The decrease of the expenses of the local govern-
ment.

And the Association offers the following suggestions on
these points, believing that, if carried out, the desired result
will be attained :

I.

TO REDUCE OUR STANDING DEBT.

New- York, to-day, with public property worth about
$200,000,000 consisting of parks, markets, Croton Aqueduct
Works and real estate connected therewith, wharves, piers
and ferries, from which a large income should be derived, is
in debt to the amount of $42,142,176.50, and is compelled
to raise by tax upon the estates of citizens seven-eighths of
the sums necessary to conduct its affairs.

There is now in the sinking fund, for the redemption of
the city debt, $15,000,000.

This amount should be at once applied towards paying of!
that indebtedness.

The Association would respectfully request your co-operation
in procuring the legislation necessary to accomplish this object.

This would leave a total debt of some $27,142,176.50.
The market property of our city, estimated to be worth
about $5,000,000 should be sold and the proceeds applied
towards paying off the debt; this would leave the debt
about $22,142,176.50.

The following statement shows the amount that the city
is annually losing under the present market system. The
net annual profit now received by the city from the markets
is about $100,000, taking no account of the interest upon
their value. If this property should be sold for $5,000,000

and the money invested, the city would receive some
$350,000 per annum as interest.

In addition, the markets being situated in centres of busi-
ness, the property in private hands would be improved and
would be worth, at least, $20,000,000.

The city would receive, by way of tax upon this property,
at the present rate of taxation, two and a half per cent, upon
the taxable value, say $250,000 per annum. Thus, if the pro-
ceeds of the sale were invested, the city would, after the sale,
receive $600,000 instead of $100,000 annually from the pro-
perty ; and if the proceeds were applied to the payment of
the city debt, as they should be, the city would still derive
an income of §250,000 per annum.

The Association, in view of the immense benefits to be derived
from the measure, asks you to use all endeavors necessary to
procure legislative authority to sell our 'public markets. Of the
balance which would then remain of the debt, $22,142,176,
50, $10,782,800 would represent the debt incurred on account
of the original cost of introducing Croton water into our city.
The Croton water debt should be paid from the Croton water
income alone. This is a revenue able to take care of its own
debt, and have a large surplus over. The debt would then
be reduced to about $11,359,376.50.

The other salable property, except the wharves and piers
owned by the city, could be disposed of for about $2,000,000,
thus leaving a debt of some $9,000,000, incurred on account
of the Central Park improvement, to represent which we
have the Park itself, worth at least $75,000,000.

The balance of our debt, viz.: $9,000,000, could be funded
in a long stock known as the Central Park improvement
stock, of 30, 31, 32, 33, 34, 35, 36, 37 and 38 years, which
would make just one million mature each year after 1898, to
be raised by tax, the interest in the meantime to be annually
raised by tax, and paid by the Comptroller. Upon such
funding the sinking fund, with all its waste, should be
abolished.

6

The Association, there/ere, asks your co-operation to secure the
legislation necessary to make the Croton Aqueduct Department
self -sustaining, to fund the balance of debt, and to abolish the
sinking fund system.

n.

THE PLAN FOR INCREASING THE CITY REVENUES.

First — The revenue for the use of Croton water should
be and might fairly be made to pay the interest on the
Croton debt; to pay the current expenses of the Depart-
ment ; to lay aside enough annually to liquidate the prin-
cipal of the debt as it falls due, and to yield about one
million annually to reduce the city taxes.

The present low rates for Croton water were fixed shortly
after it was introduced, and only amount in first-class dwell-
ings to about half a cent for one hundred gallons — which is
next to nothing.

Second — Large express companies and railroad lines
which now pay but a mere pittance into the treasury for the
privileges and advantages they enjoy, should be required
to pay what is j ust and fair.

Third — Full authority should be obtained from the *
Legislature to impose a license tax on the cars of the City
Railroads. These companies enjoy the public streets for
their business as a monopoly ; they make large profits, and
should pay for their privileges.

Fourth — There are thousands of persons doing business
in this city who do not contribute one dollar towards the
expenses of our local government for accommodations
which they enjoy equally with our tax-payers. They live
in the neighboring counties and states, and thus escape the
burdens which they should justly bear. A direct tax
should be imposed upon all such persons, graduated according
to the amount of business transacted. From the last three-
sources an annual income might be derived of $2,000,000,
and from such sources, in nearly all our large cities, income
is derived.

7

nx

THE PLAN FOR DECREASING THE EXPENSES OF OUR
LOCAL GOVERNMENT.

First — All distinctions in government between the City
and County of New-York should be abolished, thus saving
the expenses of two sets of officers doing the same general
work in the same territorial limits, and of large expense
caused entirely by a dual government.

At least one million of dollars could thus be saved.

Second — The expenses of the several metropolitan Com-
missions should be reduced one million of dollars.

Third — From a careful analysis of the expenditure of the
Department of Public Instruction, the ^Association is of
opinion that this Department could be efficiently conducted
for two and a quarter millions of dollars per annum.

Fourth — The expenses of the local government could be
reduced nearly three quarters of a million of dollars by
making our courts of justice self-sustaining.

This could be done by the institution of a plan which
should require all those persons who use the courts to pay
the expense thereof. Our courts now cost us nearly
$800,000 per year, and the city receives but about $100,000
in fees, &c, therefrom.

In our City and County Courts there are 35 Judges, 100
clerks and 89 officers, (the Police acting as officers for the
criminal and police courts.)

Each year about 2,500 cases in the Supreme Court are
put on the calendar ; in the Superior Court, about 600 ; in the
Common Pleas, about 600 ; in the Marine Court, about
5,000 suits are brought annually, and in the petty civil
courts, together, about 12,000. These amount to some
20,000, which number must be increased by some 3,000
additional suits which are never put on the calendars. For
some 30,000 litigants this expense of $800,000 is borne by

8

the community at large ; whereas, a very small tax on the
litigants themselves, which would be perfectly j ust, would
defray the expense.

Another portion of the plan is to reduce the expenses of
the courts by dismissing a number of superfluous attaches.

The other expenses of the local government can be
reduced an additional million of dollars by a judicious con-
traction of expenditure.

To thus increase the revenues and decrease the expenses
of the Government, legislative aid may be necessary ; and
the Association would respectfully request your earnest co-opera-
tion to press upon our local Boards and officers the necessity for
economy and retrenchment, and also to procure such legislation.

By this plan the annual expenses would be reduced to :

The Commissions $3,000,000

Public Instruction 2,250,000

Charities and Corrections 1,000..000

The Common Council 2,000,000

Cleaning Streets 500,000

The Interest on Funded Debt 700,000

For Incidentals 500,000

For State Purposes 3,000,000

Total $12,950,000

To meet this the annual revenue would be as follows :

First — Croton Water Revenue, in addition to the amount
required in paying the expenses of the Department,
the interest on the stock, and the principal as it falls

due $1,000,000

Second— Excise 1,000,000

Third— Revenue from River-front, Wharves, Piers, Slips,

Ferries, when developed 2,000,000

Fourth — Other sources of revenue 2,000,000

Total Revenue $6,000,000

This would leave a total of $6,950,000 to be raised by
tax, which would make the tax less than one per cent, upon

9

the 'present valuation of property, or about one-third of the
annual tax now borne by our citizens. To secure this
result the Association requests your hearty co-operation to the
furthest extent of your official power.

The Association would also call your attention to the plan
which will be presented to the Legislature for the improve-
ment of our river front, by providing in this harbor
facilities for our commerce commensurate with its im-
portance.

The objects kept in view in this plan are :

First — To give to one body or board the entire and
exclusive control and supervision of the wharves and piers
of the harbor of New- York.

Second — To give to such body all the powers necessary
to promote the public welfare, in respect to the wharves and
piers; but at the same time no power which might prove a
hardship or burden upon private capital and enterprise.

Third — To leave the improvement of the river front as
much as possible to private capital and enterprise; and

Fourth — To give the Board the power of establishing such
rates of wharfage as will induce private individuals to
develop the river front, and provide accommodations com-
mensurate with the wants of our commerce, by allowing
them a proper return upon the capital invested, but not to
give the Board any power to make outlays of the public
money, nor to engage in expensive undertakings which will
impose another heavy debt on the people.

The Association asks that you will give to this plan, which
will be submitted to you, that consideration ivhich the importance
of the subject demands, and will aid the commercial interests of
our city in securing the improvement needed in that repeat.

The Association too aid also respectfully request that you ivill
lend your co operation to procure the legislation necessary to
authorize the taxes in the City of New -York to be raised accord-
ing to the following plan :
2

10

First — Two hundred and fifty taxpayers, paying taxes on
property of the taxable value of not less than $20,000,
shall be summoned by the Mayor of the city, from among
whom, in the presence of the Presiding Justice of the
Supreme Court, twenty -four shall be selected by lot who
shall sit as a jury.

Second — Before them every branch of the local govern-
ment, including all Boards and Commissions, shall be by
law compelled to present their budgets, and any taxpayer
may appear and oppose the amounts asked for, giving his
reasons for so doing.

A majority of the jury shall determine, after hearing all
sides, the sums necessary to be raised for all local purposes
in the City and County of New- York, and their decision
shall be final.

This plan gives into the hands of our citizens the fixing
of the amount of their taxes. There is no reason why it
should not be easy for them and the public officials to agree
on this point. If such a system be adopted it will lead to
such a harmonious administration of public affairs as has
never before been witnessed in this city.

The present depression of all commercial and industrial
pursuits, and the gloomy prospect as to any immediate
change for the better, loudly call for the most thorough con-
traction of expenditure in every department of the local
government.

Our people, especially at this time, cannot submit that so
large a proportion of their earnings should be wasted in
supporting the incumbents of the many sinecure offices in
the city, and in the transaction of the ordinary routine of
public business.

It has seemed very remarkable that the increase in our
taxation should be so disproportionate to the increase in our
population.

The most stringent measures should be adopted to check

• 11

every item of waste or improper expenditure ; and the
appeal is made to you, since all waste can be effectually
checked by vigilance and prompt action in your department.

This Association sees with great regret that, in your esti-
mates for the expenses of the City Government for 1868,
you have recommended no substantial reduction below the
amounts expended last year.

Your predecessor in office, Mr. Brennan, in his estimate
for 1867, recommended $11,101,802.52 as sufficient for this
object.

You gave as an excuse for pressing the large amount
asked for in that estimate that you found it made up when
you entered upon the duties of your office in January, 1867,
and that if you had had the preparing of it the expendi-
tures would have been fixed by you at a much lower figure.
The estimate for 1868 is now before us, and we find that,
instead of making any reduction on the expenditures of
last year, as you repeatedly promised you would, you have
increased the expenditures for 1868, to §11,161,122.50.

In the estimates of your predecessor §165,000 was in-
cluded for judgments, but the estimate made by you con-
tains no amount for judgments.

In 1867 the interest on the City debt to be provided for
was §1,228,881.24, and the portion of the City debt redeem-
able was $692,420.69, while, in 1868, you estimate the
interest at $1,144,692.55, and the principal payable at
$702,420.69.

So, it will be seen, that you have asked for an increase of
$133,508.67 over the extraordinarily large estimates of last
year, which it was expected you would reduce.

The Association cannot see any tendency to a judicious
contraction of expenditure in the following amounts, recom-
mended by you in your City Budget for 1868 :

1. Advertising for the Common Council $50,000 00

2. Printing for the Common Council 60,000 00

12

FINANCE DEPARTMENT.

1. Cleaning markets $25,000 00

2. Contingencies, Comptroller's office 20,000 00

3. Salaries, Department Finance 190,589 18

STREET DEPARTMENT.

1. Contingencies $15,000 00

2. Lands and Places 45,000 00

3. New stone bridge at Kingsbridge 20,000 00

4. Printing for departments 40,0C0 00

5. Public buildings, construction and repairs 77,000 00

6. Roads and Avenues 103,500 00

7. Stationery and blank books 45,000 00

8. Street improvements 10,000 00

9. Supplies for and cleaning public offices 90,000 00

In the budget for 1867 the amounts were estimated at :

1. Advertising for the Common Council $50,000 00

2. Printing for the Common Council 80,000 00

FINANCE DEPARTMENT.

1. Cleaning markets $16,600 00

2. Contingencies, Comptroller's office 15,000 00

3. Salaries, Department Finance 160,000 00

STREET DEPARTMENT.

1. Contingencies $15,000 00

2. Lands and Places 30,000 00

3. New stone bridge at Kingsbridge 5,000 00

4. Printing for departments 40,000 00

5. Public buildings, construction and repairs 50,0?0 00

6. Roads and Avenues 60,000 00

7. Stationery and blank books 40,000 00

8. Street improvements 5,000 00

9. Supplies for and cleaning public offices 75,000 00

It will thus bevseen that the decrease in these items
amounts to $20,000, while your increase in these items
amounts to $169,589.18.

The Association doubts the expediency of a stone bridge
at Kingsbridge. Last year $5,000 was appropriated for this

13

purpose. It is very questionable whether any such perman-
ent bridge should be built, as, in the course of a few years,
the improvement of the Harlem River may necessitate the
removal of all such permanent obstructions. It was to be
expected and hoped from your assurances, voluntarily given
to the Association, to protect the interests of our tax-payers,
that you would have reduced these items of expenditures
very sensibly below the estimates of last year, since in these,
or most of these, the public money has heretofore been
squandered.

This Association cannot understand how you are pro-
moting the interests of the tax-payers by recommending that
such large sums should be appropriated for advertising,
printing, blank-books, stationery, repairs to our public
buildings, supplies for our public offices, and for keeping
the public roads in repair. It was to be expected that in
all these matters, whatever the estimates of the different
departments and bureaus may have been, you would have
accompanied such estimates with recommendations of re-
trenchment, showing you to possess an earnest desire to
lessen the public expenditures.

In view of the fraudulent disposition of large sums for
these purposes in preceding years, the proposed expendi-
tures of such vast sums for another year must be regarded
by the people as a fraud upon the tax-payers of this city.

The Association trusted that instead of asking for in-
creased appropriations, you would have exerted the whole
power of your office to stop the monstrous waste which, for
years, has been permitted under the specious pretences con-
nected with the items of advertising, printing, roads and
avenues, and other kindred expenses.

The appropriation of $60,000 of last year for roads and
avenues was in excess of what was required by even an
ordinarily honest expenditure, and now you recommend
$103,500 for keeping the twelve miles of travelled public

14

roads in this city in common order, while the Central Park
Commissioners spend but about $50,000 a year in keeping
their carriage-roads and walks in most admirable repair.

The Association regrets that you have asked for $190, 589. 18
for the salaries of your office for 1868, which is some $30,000
in excess of the estimate for such purpose for 1867, made
by your predecessor in office, Mr. Brennan.

The Association cannot see that the exigencies of the
public service require this increase ; but is of opinion that
the financial department could be carried on as efficiently as
now, for many thousands of dollars less than your estimate.

In this connection, the Association would call your atten-
tion to the following article, which appeared in the Evening
Post, making a comparison between the clerical force and
amount of business of the United States Sub-Treasury, in
New-York, and the Finance Department of this city :

" In the Comptroller's Department in this city there are
employed one hundred and thirty-one clerks and chiefs of
bureaus, at an annual expense of $167,642.81 for salaries ;
also $19,546.61 for contingent expenses, besides the City
Chamberlain, through whom all payments are made, with a
salary and perquisites of $150,000 per annum.

" The amount of the entire transactions of the Comptrol-
ler's Department is $37,587,811.95 for 1865. In the United
* States Treasury Department, in this city, there are employed
sixty-eight persons. The amount of salaries paid is $122,904.

" The amount of transactions was two thousand five hun-
dred and eight millions for 1865. While, therefore, about
one-half the number of persons were employed, the volume
of business transacted was sixty-eight times greater.

" At this rate the City Government would require eight
thousand nine hundred and eight persons to perform the
same amount of business that was transacted by the Treasury
Department of the United States, in this city, by sixty-eight
persons; at the same rate it would cost $11,899,711.08 for

15

salaries to perform the same amount of business under the
City Government."

The Association calls your attention to the following por-
tion of the Message of Mayor Hoffman, of January 6, 1868 :

" We are now beginning to pay the indebtedness con-
tracted during the war, and our people must be fully pre-
pared to bear heavy burdens. 7/ is certain, however, that a
very large amount of money may be saved annually, by a proper
effort, in the various departments of the City and County Govern-
ments, and in the Boards and Commissions, to cut down the
number of employes upon the pay-rolls, which are unnecessarily
large, and to scrutinize more closely the prices charged for all
sujyplies and articles furnished. There must be increased
economy. We shall need all our resources, as well as all our
self-denial, to meet the increasing demands upon us ; and 1
urge upon all persons charged with public trusts to bear in mind
the facC

If it be said, in reply to the above comments of the Asso-
ciation on the amount of salaries paid by you, that the
Common Council has created the offices in your department,
and has fixed the salaries thereof, it is still true that the
power of making the appointments and discharging the
clerks is in the head of each department ; hence, it would
be an easy matter for you to follow the Mayor's advice, by «
discharging such of the clerical force for which there is no
longer any occasion, and refusing to make any new appoint-
ments.

The Association would also call your attention to the
matter of expenditures under the bead of "Lamps and
Gas." Coal has materially decreased in price ; but the Asso-
ciation is informed that no sensible reduction has taken place
in the price charged to the city per lamp for gas.

The Association trusts that you will take a broad and
comprehensive view of the foregoing matters, and will be

16

influenced in your action thereon by motives of public good
alone.

The practice of extravagance in our public expenditures
tends rapidly to undermine confidence and drive capital
from our city, and creates a feeling of insecurity of property
on all sides. Our taxes have been increased, until they are
now most oppressive, thus greatly retarding the growth of
our city. Within the last few years, in consequence of the
system of extravagant public expenditures prevailing here,
many millions of capital have been driven to New Jersey
and the neighboring States, to the great damage of our city,
since many of our larger merchants hesitate to reside where
the public burdens are so great and so difficult to be borne.

The Association also trusts that you will keep one great
object in view, which, under a wise financial management
can be attained, and that is, that when your term of office
shall expire, our city and county may be nearly out of debt,
the public revenue largely increased, and the rate of taxa-
tion reduced to one per cent, upon the present basis of valua-
tion of property.

The great question of the day is, " Retrenchment, and intelli-
gent, thorough, comprehensive reform."

Very respectfully,

PETER COOPER,

Chairman Citizens' Association of New -York.

Richard M. Henry, Secretary.

iEx Hthrtfi

SEYMOUR DURST

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